Pharma group targets China with $10m acquisition of e-commerce players

Pharma group targets China with $10m acquisition of e-commerce players

Star Combo is positioning itself as a major exporter of Australian pharmaceutical products with its $10 million spending spree on China focused e-commerce businesses.

The Sydney-based manufacturer and distributor of health, pharmaceutical and beauty products has acquired the businesses of Koala Mall and Austoyou Group.

Both businesses have a direct line to the Chinese market as e-commerce platforms which Star Combo hopes will get them into the US$5.2 billion Chinese vitamin and supplement market.

Austoyou is an Australia-China e-commerce platform that offers over 5000 high-demand product lines directly to Chinese health product consumers.

With Australian health products in high demand in China, thanks to their perception as being of high quality, Star Combo is betting on this investment to pay off in droves.

"The addition of the Austoyou e-commerce platform is viewed by the company as a transformational acquisition that will accelerate growth plans with a significant near-term increase in revenue," says Star Combo in its release to the ASX.

Star Combo says its acquisition of Koala Mall will enable the company to showcase its range of products at a number of stores in Sydney.

The company, listed in mid-2018 and founded in 2004, has its products stocked in 450 Terry White and Symbion chemists in Australia and China.

Shares in Star Combo spiked yesterday and hit a high of $0.84 this morning, but have since dived 14 per cent to $0.73 per share at 11.37am AEDT.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

Please tick to verify that you are not a robot

 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Naturally Good: Showcasing Australia’s natural and organic leaders
Partner Content
With just days to go until Naturally Good, Australia’s leading trade exhibition d...
Naturally Good
Advertisement

Related Stories

Ousted Bubs execs launch advisory firm TAKE Global

Ousted Bubs execs launch advisory firm TAKE Global

As the former CEO and chair respectively of Bubs Australia (ASX: BU...

Baby Bunting shares plummet after 'unprecedentedly low' sales

Baby Bunting shares plummet after 'unprecedentedly low' sales

Baby Bunting Group (ASX: BBN) has seen shares tumble by 24pc this m...

Lewis Land’s $1.5b Harbour Shores to drive decade-long transformation of Harbour Town precinct

Lewis Land’s $1.5b Harbour Shores to drive decade-long transformation of Harbour Town precinct

Sydney-based Lewis Land Group is preparing for a decade-long transf...

Amcal owner Sigma will give shares to Chemist Warehouse in exchange for $3b supply deal

Amcal owner Sigma will give shares to Chemist Warehouse in exchange for $3b supply deal

The owner of such pharmacy retail brands as Amcal, Discount Drug St...